Revival plan for AN Buildwell's projects in lurch fails to convince Delhi HC

While hearing the liquidation case, Justice Siddharth Mridul on October 26 directed the company to give the details of money to be infused by developers to revive the project.TNN | October 31, 2016, 13:41 IST

GURGAON: Concerned about the fate of over 1,700 investors in two projects of AN Buildwell, Spire Edge in Manesar, a commercial project, and Spire Wood in Gurgaon’s Sector 103, a group housing project, the Delhi high court has pulled up the developer and asked it to come up with “a proper revival plan” to complete the projects.

While hearing the liquidation case, Justice Siddharth Mridul on October 26 directed the company to give the details of money to be infused by developers to revive the project. The court also directed the company’s new partner — a Lucknow-based developer who is expected to infuse money in the project along with shareholders — to appear before it on November 11, which is the next date of hearing, and give in writing the intent to infuse money.

The company had already submitted a revival plan. However, the builders, have been asked to submit all details, which include money to be collected from buyers and funds needed for completion of its projects.

Mired in controversy since the launch of the two projects, all directors of AN Buildwell have already resigned, while work at sites stopped for the last two years as the company went into liquidation.

The high court had in August stayed the liquidation process and the Haryana government had ordered a probe into the alleged diversion of funds by the company’s directors to other projects.Recently, shareholders of the company had submitted a revival plan in which they have submitted to put in their money, along with a new developer to restart the work. But the revival plan failed to impress the court, which directed the developer to prove its seriousness in reviving the projects. It also asked the developer to submit before its intent to execute the revival plan on November 11.

The court’s direction came after the official liquidator (OL) submitted its report, saying the developer’s revival plan has been lacking seriousness. “The submitted revival plan does not inspire adjusted confidence and it seems there is lack of seriousness on part of the promoters to present a meaningful revival scheme of the company,” reads the report of OL.

Vishal Dubey, president of Spire Wood Residents’ Association, said they are hoping that the matter will be resolved in the interest of the buyers. FOSECA, another association of buyers, welcomed the HC’s directions, but alleged that the promoters are trying to divert attention by talking only about the Spire Wood project. “They are not bringing forth the issue of Spire Edge project, which involves a larger fraud,” said a member of the group. A spokesperson for the company said, “We will comply with the direction of the court.”